PNW · 10-Q · 2026Q3 · Full report
Data Center / Load Growth
PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 58 · Surprise 42 · In source text
APS projects weather-adjusted annual retail electricity sales growth of 8.0% to 10.0% in 2026 and on average through 2030, with large manufacturing and data-center facilities contributing 5.0% to 7.0% of 2026 growth and 7.0% to 9.0% of average annual growth through 2030. Incremental requests from large, around-the-clock energy users exceed available generation and transmission capacity in the Southwest for the foreseeable future, and APS has established a queue to prioritize projects while protecting reliability and affordability. On October 16, 2026, APS signed a 25-year Direct Pricing Contract with TSMC Arizona to ramp service to approximately 1.88 gigawatts; APS expects to submit it to the ACC for approval in 2026. The contract provides for upfront credit-support payments and other collateral beginning January 1, 2027, with amounts varying over the contract term.
Key facts
- Under its direct pricing contract, APS agreed to ramp service to approximately 1.88 gigawatts for TSMC Arizona’s semiconductor fabs and advanced packaging facilities for an initial 25-year term. source
- On October 16, 2026, APS signed a direct pricing contract with TSMC Arizona and expects to submit it to the ACC for regulatory approval in 2026. source
- Large manufacturing and data center facilities are expected to contribute 5.0%–7.0% to APS’s 2026 sales growth and average annual growth of 7.0%–9.0% through 2030. source
- In 2026, APS introduced its Pledge for Responsible Energy Growth to protect customers while serving new large energy users. source
- APS’s pledge provides that new large energy users should pay the costs associated with serving their energy needs and growth. source
- The TSMC Arizona direct pricing contract provides for upfront credit-support payments and liquid and non-liquid collateral beginning January 1, 2027; amounts and forms vary with factors including in-service dates of supporting resources. source
- APS states that incremental large-user service requests far exceed available generation and transmission capacity in the Southwest for the foreseeable future. source
- APS filed its latest IRP on October 30, 2026, reporting that forecast customer demand and energy needs were growing faster than previously predicted. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | — | Under its direct pricing contract, APS agreed to ramp service to approximately 1.88 gigawatts for TSMC Arizona’s semiconductor fabs and… |
| revenue | positive | committed | — | Large manufacturing and data center facilities are expected to contribute 5.0%–7.0% to APS’s 2026 sales growth and average annual growth… |
| revenue | positive | committed | — | Large manufacturing and data center facilities are expected to contribute 5.0%–7.0% to APS’s 2026 sales growth and average annual growth… |